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1999-03-08 CITY COUNCIL PUBLIC HEARING MEETING MINUTES - 7:00PMMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON MARCH 8, 1999, AT 7:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Tom Reid Mayor Pro -Tem Larry Wilkins Councilmember Helen Beckman Councilmember Richard Tetens Councilmember William Berger Councilmember Klaus Seeger City Manager Glen Erwin City Attorney Darrin Coker City Secretary Young Lorfing Others in attendance: Sr. Project Manager Alan Mueller; City Engineer John Hargrove; Assistant City Attorney Nghiem Doan; Customer Service Clerk Wendy Henry. PURPOSE OF HEARING - PROPOSED REINVESTMENT ZONE NUMBER 5 To consider the creation of a reinvestment zone and tax abatement for Affiliated Spartan Insurance Agencies, Inc. to be located on Pine Hollow Drive at FM 518 in Pearland in accordance with § 312.201 of the Tax Code and City of Pearland Resolution No. R98-59. STAFF REVIEW City Manager, Glen Erwin, stated that this is a 3.165 acre tract on the southwest corner of Pine Hollow at Broadway-FM518. He further stated that we are here to make specific findings about Reinvestment Zone No. 5. The reinvestment zone will be used for corporate headquarters for Affiliated Spartan Insurance Agencies, Inc. It is PEDC Prospect Number 99-01. Mr. Erwin and gave an overview of reinvestment zones, and continued with the findings required for the designation of a reinvestment zone as follows: Are the improvements sought feasible? City Manager, Glen Erwin, stated that the answer to this question is "Yes". They conform to the zoning in the area which is Commercial Zoning, and they compliment the structures around them. Page 1 of 3 - - 3/08/1999 2. Will the proposed improvements benefit the reinvestment zone after the tax abatement agreement expires? City Manager, Glen Erwin, stated that the answer to this question is also "Yes." The proposed improvements will have estimated economic benefit for thirty years. He also stated that ad valorem taxes will be collected during this period of the abatement and it is anticipated that the employment will continue to increase in the reinvestment zone. 3. Is the proposed reinvestment zone reasonably likely to (a) contribute to the retention or expansion of primary employment? Or (b) attract major investment in that area? City Manager, Glen Erwin, stated that question number three is also answered in the affirmative. The proposed improvement will bring approximately 45 employees to the area. The proposed improvement value is estimated to be $1.1 million in building value and personal property value of about $89,000. Mr. Erwin further stated that this type and quality of investment should attract other improvements of this nature and additional employees to the immediate zone. In closing Mr. Erwin asked Council to consider approving the application for Reinvestment Zone No. 5. CITIZEN COMMENTS None. COUNCIL/STAFF DISCUSSION Councilmember Seeger stated that it is his understanding Affiliated Spartan Ins. is closing their facility in Clear Lake. Councilmember Seeger asked if there is any example of the type of facility they are proposing to build here? City Manager, Glen Erwin, stated that he is not familiar with what type of facility is in Clear Lake and he has not seen any specifications on the new building. They will probably start the new facility plans sometime in April. Mr. Erwin further stated that the tax abatement will be for a period of five years at 40%, and the tax abatement will go into effect the first of next year. ADJOURNMENT Meeting was adjourned at 7:25 p.m. Page 2 of 3 - 3/08/1999 Minutes approved as submitted and/or corrected this the 29th day f March, A.D., 1999. Tom Reid Mayor ATTEST: Page 3 of 3 - 3/08/1999 THIS PAGE LEFT INTENTIONALLY BLANK